I haven't read the thread, but I imagine this question hasn't come up yet...

Why hasn't my gas costs at the pump gone down in similar fashion????



:cuss:

This is when the retailers do their cash grab.

Your gas costs have gone down. When crude was $147, gasoline was $4.11.

Last week, crude was $118 and gasoline was $3.67.

Fixed your post for my area.

We haven't seen $4 gas yet.

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COME OOOOOOOOOOOOOON DOOOOOOOOOOOOOOOOOOOOWN!

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Until the PRICE IS RIGHT

National average, boys.

Actually, when oil was $147 a barrel here, gas was $3.99

Now that Crude is under $110 a barrel, gas is still $3.65


Our prices have gone down less than a penny per gallon/dollar per barrel. When the price per barrel was going up, gas prices were jumping close to a nickel per gallon/price per barrel locally.

Oddly, oil was at the $100-$110 a barrel price at the start of 2008 and you could buy gas at just under $3 a gallon locally. Now that oil prices are coming back to that, gas is still over $3.60 a gallon locally.


The price may have come down, but not in proportion to how it went up.

Actually out here, it was at $4.05 for a day or so then dropped back down to just under $4.

That's why the relationship between local retail pricing of gasoline and crude are not linear.

Retailers can charge whatever they want.

Where are you located, BTW?

That has been my question for several weeks now. Since the price of crude dropped by about 30%, why hasn't my price at the pump dropped accordingly? We absolutely should be under $3 a gallon if the speculation market is what drives the price I am paying.

Because retail prices drop more slowly than they increase. Think of it this way:

When gasoline prices are dropping in response to crude dropping, the retailer is still selling gasoline that he bought when crude was higher. So, in order to not lose too much money on the inventory he has in his tanks, he drops his prices as slowly as possible.

Make sense?

It would if the arguement for it going up as soon as the crude price goes up wasn't so that they can afford the next load. So the price goes up immediately to cover the next shipment but the price stays up to pay for what they have in the tank already. :shake:

Sure is funny that when prices are going up, it's about the replacement cost, and when it's going down it's about what he paid for what is in the tank. Why don't you just call it what it really is?